A lost-luggage handler ran an Ecuador-to-New York smuggling ring that disguised drugs in chocolates and cocaine-soaked scuba diving certificates, and stole valuables out of flyers' misplaced bags that he was hired to deliver, authorities have said.

Jorge Guerrero arranged to ship innocent-looking but drug-laden packages on cargo planes from Guayaquil, Ecuador, to New York's JFK airport, authorities said, as he, his wife and four others pleaded not guilty to conspiracy and other charges. The packages went to parcel delivery companies, where the conspirators picked them up, authorities said.

Seized shipments included sugar and oatmeal biscuits packed atop 0.5kg (1.1lb) of cocaine, chocolate sweets laced with heroin, and empanadas – a Latin American savoury pastry – stuffed with over 1kg of cocaine, all in professional-looking packages as if bound for store shelves, according to authorities.

Also listed was a stack of diving course diplomas that had been drenched in more than 1kg of cocaine, which was apparently to be extracted later.

Guerrero sometimes picked up the packages while on his trips for a baggage delivery company, and he also exploited his job to take jewellery, electronics and other items from the lost luggage to resell, authorities said.

"The Guerrero organisation rarely overlooked an opportunity to earn a dishonest dollar," special narcotics prosecutor Bridget Brennan said. Her office and US immigration and customs enforcement did the investigation.

Guerrero, 39, had worked for seven to 10 years for a lost-luggage firm based in Queens, New York, said his lawyer, Franklin Rothman. The company, which was not charged in the case, declined to comment.

"Whatever this investigation yields, we haven't heard about the drugs being recovered from [Guerrero's] home," Rothman said.

Guerrero's wife, Cecilia, 33, was an "active partner" and money manager in his smuggling scheme, assistant district attorney William Novak said.

Her lawyer, Bryan Konoski, argued the charges against her did not make her out to be a major player.

"There's no allegation that she's out there wrapping up drugs into chocolate bars" or making drug deals, he said.

The Guerreros had been married for 17 years and had three children, who were in relatives' care, Konoski said. She is an Ecuadorean citizen. He is a US citizen originally from Ecuador.

More than 50 handbags bearing such names as Louis Vuitton and Prada, 50 watches, 30 pairs of sunglasses by designers including Versace and Dior, 15 cameras, and other pricey goods were found at Guerrero's Queens home, along with three ledgers logging items he had fished from luggage and sold, authorities said.